Repeated Requests for Documentation
Insurance policyholders in California expect their health or life insurance claims to be processed in a timely and fair manner. Unfortunately, sometimes insurance companies engage in tactics designed to delay or deny legitimate claims. One such tactic is making repeated requests for documentation, which can burden policyholders and obstruct the claims process. This practice can constitute bad faith under California law, particularly when used as a strategy to delay or deny the payment of benefits.
At Gianelli & Morris, our focus is on helping policyholders hold insurance companies accountable for the harm caused by bad faith insurance practices, including making repeated requests for documentation that are not necessary to process the claim. Contact our office for a free case evaluation if your insurer is causing needless and unreasonable delays in getting you the benefits you are entitled to under your policy.
Understanding Bad Faith Insurance Practices
Insurance companies are legally obligated to act in good faith and fair dealing when handling claims. This means they must process claims fairly, promptly, and without unreasonable delays. When an insurer fails to meet these obligations, it can be found to have acted in bad faith. Bad faith practices can take many forms, including unjustified denials, unreasonable delays, and making repeated or unnecessary requests for documentation.
California Insurance Code 790.03(h)(11)
A long list of bad faith insurance practices is described in section 790.03 of the California Insurance Code. Specifically, California Insurance Code 790.03(h)(11) addresses the issue of repeated requests for documentation. This provision of California law describes an unfair and deceptive practice for an insurer to be “Delaying the investigation or payment of claims by requiring an insured, claimant, or the physician of either, to submit a preliminary claim report, and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information.”
This provision highlights that insurance companies cannot legally require policyholders to repeatedly submit the same documents as a way to delay the processing of a claim. When insurers engage in such practices, they may be violating the law and acting in bad faith.
How Repeated Requests for Documentation Can Be a Bad Faith Practice
Insurance companies may make repeated requests for documentation for several reasons, none of which serve the policyholder’s interests:
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Delaying the Claim Process: By continually requesting the same documentation, an insurance company can significantly delay the processing of a claim. This delay can cause unnecessary stress and financial hardship for policyholders who are waiting for the benefits they are entitled to receive.
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Hoping the Policyholder Will Abandon the Claim: Some insurance companies may use repeated documentation requests as a tactic to frustrate policyholders to the point where they abandon their claims altogether. This is particularly harmful when the policyholder is already dealing with a serious health issue or the loss of a loved one.
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Creating a Pretext for Denial: In some cases, insurers may claim that they never received the requested documentation, using this as a pretext to deny the claim. By continuously asking for the same documents, they create a paper trail that they may later use to justify an unjust denial.
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Wearing Down the Policyholder: Insurance companies know that the claims process can be overwhelming, especially when a policyholder is dealing with a serious illness or a family tragedy. By making repeated requests for documentation, they can wear down the policyholder’s resolve and increase the chances that the policyholder will accept the insurer’s position or give up the claim entirely.
Protecting Your Rights as a Policyholder
If you are a health or life insurance policyholder in California and your insurance company is making repeated requests for documentation, it is essential to recognize this tactic as a potential bad faith practice. You have the right to fair treatment and prompt payment of your benefits. If you believe that your insurer is acting in bad faith, you may have legal recourse.
Gianelli & Morris: Advocating for Policyholders’ Rights
At Gianelli & Morris, we have extensive experience representing policyholders who have been victimized by bad faith insurance practices. We understand the frustration and hardship that repeated requests for documentation can cause, and we are dedicated to holding insurance companies accountable for their actions. If you believe your insurer is engaging in bad faith practices, our team can help you navigate the legal process and seek the benefits you are owed.
Contact Gianelli & Morris Today
Insurance companies are required by law to handle claims in good faith. When they make repeated requests for documentation, they may be engaging in bad faith practices designed to delay or deny your claim. If you are facing such tactics from your insurer, it is important to take action. Contact Gianelli & Morris to discuss your case and protect your rights as a policyholder. Call 213-489-1600 for a free consultation.
By understanding your rights and recognizing bad faith practices, you can better protect yourself and ensure that you receive the benefits you are entitled to under your health or life insurance policy.
